BANK MUTUAL CORP

CIK:0001123270|SEC Filings

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income:
Loans	$ 20,557	$ 18,209	$ 58,725	$ 52,505
Mortgage-related securities	2,483	3,139	7,503	9,122
Investment securities	163	117	452	338
Interest-earning deposits	25	5	52	23
Total interest income	23,228	21,470	66,732	61,988
Interest expense:
Deposit liabilities	1,773	1,468	4,770	4,319
Borrowings	1,767	1,290	4,679	3,790
Advance payments by borrowers for taxes and insurance			1	1
Total interest expense	3,540	2,758	9,450	8,110
Net interest income	19,688	18,712	57,282	53,878
Provision for loan losses	472	1,395	1,552	1,986
Net interest income after provision for loan losses	19,216	17,317	55,730	51,892
Non-interest income:
Deposit-related fees and charges	2,935	2,991	8,492	8,685
Mortgage banking revenue, net	788	1,354	2,401	3,321
Brokerage, advisory, and insurance revenue	824	816	2,362	2,529
Loan-related fees	381	1,136	1,483	4,001
Income from bank-owned life insurance (“BOLI”)	442	460	1,317	1,387
Gain on real estate held for investment	56	12	325	12
Net loss on sale of retail branch offices, loans, and deposits	(197)	0	(197)	0
Other non-interest income	26	98	181	186
Total non-interest income	5,255	6,867	16,364	20,121
Non-interest expense:
Compensation, payroll taxes, and other employee benefits	10,619	10,452	32,521	31,155
Occupancy, equipment, and data processing costs	3,428	3,317	10,657	10,133
Advertising and marketing	535	737	1,829	2,292
Federal insurance premiums	350	273	1,029	1,078
Losses and expenses on foreclosed real estate, net	15	169	286	80
Merger-related expenses	1,263	0	1,263	0
Other non-interest expense	2,169	2,298	6,350	6,993
Total non-interest expense	18,379	17,246	53,935	51,731
Income before income taxes	6,092	6,938	18,159	20,282
Income tax expense	2,250	2,484	6,485	7,406
Net income	$ 3,842	$ 4,454	$ 11,674	$ 12,876
Per share data:
Earnings per share-basic (in dollars per share)	$ 0.08	$ 0.1	$ 0.25	$ 0.28
Earnings per share-diluted (in dollars per share)	0.08	0.1	0.25	0.28
Cash dividends per share paid (in dollars per share)	$ 0.055	$ 0.055	$ 0.165	$ 0.160

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net income	$ 11,674	$ 12,876
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	1,552	1,986
Provision for depreciation	2,446	2,527
Amortization of mortgage servicing rights	1,100	1,636
Net premium amortization on securities	1,791	2,039
Loans originated for sale	(64,532)	(112,500)
Proceeds from loan sales	67,311	109,816
Gain on loan sales activities, net	(1,662)	(3,042)
Deferred income tax expense (benefit)	(183)	2,956
Gain on real estate held for investment	(325)	(12)
Net loss on sale of retail branch offices, loans, and deposits	197	0
Other, net	(11,707)	(10,244)
Net cash provided by operating activities	7,662	8,038
Investing activities:
Principal repayments on mortgage-related securities available-for-sale	83,020	86,977
Principal repayments on mortgage-related securities held-to-maturity	1,374	17,493
Purchases of mortgage-related securities available-for-sale	(99,574)	(56,137)
Purchases of FHLB of Chicago stock	(17,471)	(1,614)
Redemptions of FHLB of Chicago stock	19,371	0
Net increase in loans receivable	(44,179)	(188,675)
Proceeds from sale of foreclosed properties	2,754	2,048
Proceeds from sale of real estate held for investment	1,020	0
Net (purchases) dispositions of premises and equipment	4,200	(1,339)
Net cash used by investing activities	(49,485)	(141,247)
Financing activities:
Net increase in deposit liabilities	59,822	71,524
Net increase in short-term borrowings	15,000	115,000
Repayments of long-term borrowings	(46,128)	(72,011)
Net increase in advance payments by borrowers for taxes and insurance	25,688	26,837
Cash dividends	(7,576)	(7,291)
Purchases of treasury stock	0	(221)
Other, net	462	678
Net cash provided by financing activities	47,268	134,516
Increase in cash and cash equivalents	5,445	1,307
Cash and cash equivalents at beginning of period	50,087	44,501
Cash and cash equivalents at end of period	55,532	45,808
Supplemental information:
Interest on deposit liabilities and borrowings	9,591	8,035
Income taxes	5,795	4,278
Non-cash transactions:
Loans transferred to foreclosed properties and repossessed assets	$ 711	$ 1,252

Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 27,695	$ 31,284
Interest-earning deposits	27,837	18,803
Cash and cash equivalents	55,532	50,087
Mortgage-related securities available-for-sale, at fair value	386,481	371,880
Mortgage-related securities held-to-maturity, at amortized cost (fair value of $92,561 in 2017 and $94,266 in 2016)	91,617	93,234
Loans held-for-sale	4,026	5,952
Loans receivable (net of allowance for loan losses of $21,326 in 2017 and $19,940 in 2016)	1,984,823	1,942,907
Mortgage servicing rights, net	6,278	6,569
Other assets	164,917	177,895
Total assets	2,693,674	2,648,524
Liabilities:
Deposit liabilities	1,924,552	1,864,730
Borrowings	408,022	439,150
Advance payments by borrowers for taxes and insurance	30,458	4,770
Other liabilities	38,292	53,233
Total liabilities	2,401,324	2,361,883
Shareholders’ equity:
Preferred stock-$0.01 par value: Authorized-20,000,000 shares in 2017 and 2016 Issued and outstanding-none in 2017 and 2016	0	0
Common stock-$0.01 par value: Authorized-200,000,000 shares in 2017 and 2016 Issued-78,783,849 shares in 2017 and 2016 Outstanding-45,938,464 shares in 2017 and 45,691,790 in 2016	788	788
Additional paid-in capital	483,592	484,940
Retained earnings	175,731	171,633
Accumulated other comprehensive loss	(11,234)	(11,139)
Treasury stock-32,845,385 shares in 2017 and 33,092,059 in 2016	(356,527)	(359,581)
Total shareholders’ equity	292,350	286,641
Total liabilities and shareholders’ equity	$ 2,693,674	$ 2,648,524